New car registrations plummeted by around 24% last month compared to June 2021, according to preliminary figures from the Society of Motor Manufacturers and Traders (SMMT). Manufacturers have faced problems fulfilling orders due to global shortages of semiconductors, the trade body said. Drivers face wait times of more than a year for some models. In the first half of 2022, only around 800,000 new cars were sold – a 12% decrease compared to the same period last year. This represents the sector’s second-weakest performance from January to June since 1992. Jim Holder, editorial director of What Car? magazine and website, said car buyers are facing delayed orders and increased prices as manufacturers pass on the cost of rising energy bills. “The result is longer waiting times for cars that will cost more to buy,” he warned. Growing demand for electric cars Electric cars make up a growing percentage of sales. About 16% of new cars registered in June were all-electric, compared with 11% in the same month last year, according to separate figures from green car consultancy New AutoMotive. Use Chrome browser for more accessible video player 13:55 How Chile’s mega mines are critical to our electric future Ben Nelmes, co-founder of New AutoMotive, said rising petrol and diesel prices are “driving consumers towards electric cars”, but the supply of vehicles “can’t keep up with demand”. “We’re hearing that lead times for electric cars are now between 40 weeks and a year,” he said. “Electric vehicle supply is the biggest barrier to cleaner UK road transport”. Listen to and subscribe to The Ian King Business Podcast here. Manufacturers will be required to sell a certain percentage of zero-emission vehicles and trucks from 2024. Mr Nelmes urged ministers to ensure this level is higher than the 22% proposed for cars in order to “attract more electric vehicles to the UK”. Sales of new petrol and diesel cars will be banned from 2030 as part of the UK’s plan to reach net zero carbon emissions by 2050.
